Dish Network in Talks with Investors to Settle Lawsuit

According to Bloomberg Dish Network L.L.C., the ailing satellite television provider with more than $20 billion in debt is in talks with creditors to resolve a lawsuit tied to a controversial transfer of assets.

Dish Network in Talks with Investors to Settle Lawsuit

The meeting between the company and investors represented by Lazard Inc. and Milbank could take place as soon as this week, according to people familiar with the matter, who told not to be named because they aren’t authorized to talk about it.

The people said Confidential talks also include the possible extension of a $2 billion bond issued by Dish Direct Broadcast Satellite (DBS) due November 15.

Messages left with Milbank, Dish, and its legal counsel White & Case weren’t returned. Representatives for Lazard and Houlihan Lokey Inc., the company’s financial adviser, declined to comment.

A group of creditors sued Dish in April demanding it undo a series of collateral transfers it made earlier in the year to move assets out of reach of bondholders. Dish, which is seeking to transition from pay-TV to wireless services, had transferred a handful of wireless spectrum licenses into a new legal entity and freed a new unit holding 3 million television subscribers from debt covenants, as part of an effort to address its debt stack.

Talks are ongoing that Dish’s convertible bondholders have offered to provide new financing, which would be backed by some of these assets.

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